When the Benefit-Cost Ratio of a Project Is Greater Than

question 30

Multiple Choice

When the benefit-cost ratio of a project is greater than 1,the project should be considered.

• A) True
• B) False
• C) Uncertain

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Definitions:

Overhead Expenses

Ongoing costs of operating a business that are not directly associated with the production of goods or services, such as rent, utilities, and administrative costs.

Operating Profit

The income generated by a company's main business activities, not including interest and tax deductions.

Markdown

A reduction from the original or previous selling price of goods or services.

Breakeven

The juncture where total expenses match total income, leading to neither a net profit nor a loss.